S-Corp Med Premiums for family

Aloha-
Was hoping to get some clarification on S-Corp Medical premiums paid by a company - I have a client that has a husband who is shareholder that owns 100%, and wife who is employee. For their health insurance, the company pays for the husband a premium for him and their child. For the wife, the company pays her premium. (I don't know why they are not on one policy). Their CPA says for the husband's W-2, only to include the amount of the premium that applies to him, not the total that covers him and the child, and not to include any in the wife's W-2, since he is 100% shareholder.

That doesn't seem correct to me, but I can't find any specifics on the IRS website..I would have thought since this is a fringe benefit, that the entire amount paid on behalf of the husband (for him and child) would be included as income. I woulda thought wife's would have to be included in hers too, but I can see how they could think not since she's not a shareholder, but just employee.

Any thoughts?

thanks,
Missy